Do we take state pension

S_Wales_Saver

OH reaches 65 soon but intends to work on. We know he can defer state pension date and either get a higher rate or a lump sum.

How can we decide what is best in our circumstances? What if he doesn,t survive to claim the lump sum?

The same thing will happen to me in 2 yrs so we really need to get this worked out.

Thanks

tanith

I would say that if you want defer the pension but take the lump sum and make good use of it ........ I am no expert but I wouldn't want to take the chance of missing out on the opportunity to put it to good use whilst I was still able ............

I am sure that someone with much more nounce than me will give u good financial advice...

Cardew

There is no 'one size fits all' solution.

Personally I would only consider deferring the pension if salary plus pension would put you in the 40% tax bracket.

CIS

you can find pension service booklets on the lump sum versus deferral here

http://www.thepensionservice.gov.uk/pdf/spd/spd1jun05.pdf

KMK

Initially it seems attractive as a proposition because of the interest rate on offer. What am I missing here? If you can afford to put off your state pension, why is this not a good idea. Bird in the hand etc? Or are there better places to invest your state pension if you can afford to defer it??